FY 2027 Budget
approvedStatus set at City Council Special Meeting: Budget Adoption on May 5, 2026
- Proposed
- Under reviewApr 14, 2026
- approvedMay 5, 2026
Summary
The FY 2027 Budget for the City of Fairfax, Virginia covers the fiscal year beginning July 1, 2026. The budget process began with a series of public hearings held on March 10, March 24, and April 14, 2026, at which residents raised topics including police compensation, a proposed real estate tax rate increase, a Green Building Policy, funding for a full-time Climate and Energy Manager position, and concerns about the meals tax, BPOL, and transient occupancy tax changes. At an April 7 work session, Council reached consensus to advance BPOL and Transient Occupancy Tax (TOT) ordinance introductions and directed staff to review Budget Memos #1, 5, 6, and 8. On April 28, Council reached consensus on Scenario 3.A.A., setting the real estate tax rate at $1.0725/$100, BPOL (Professional) at $0.45, BPOL (Services) at $0.30, and TOT at 10.5%. On May 5, 2026, the City Council held a special budget adoption meeting and approved the full FY 2027 Budget unanimously (6-0) across all motions, including the FY 2027–2031 Capital Improvement Program, the Schedule of Rates and Levies, employee compensation adjustments, establishment of tax rates, and appropriation resolutions R-26-16 through R-26-24. The adopted real estate tax rate of $1.0725 was lower than both the City Manager's initially proposed rate of $1.08 and the advertised rate of $1.095.
What members have said
At the May 5, 2026 budget adoption meeting, Councilmember Hall noted that the City Manager had originally proposed a rate of $1.08 and the advertised rate was $1.095, but through continued effort the rate was brought down to $1.0725. He explained this results in a $462.50 increase for the average-priced home — $335 attributable to natural growth in assessment and $127.50 to the tax rate increase — and emphasized the importance of understanding how those numbers break down.
At the May 5, 2026 special meeting, Councilmember Hardy-Chandler moved to approve the appropriation resolutions for all budget funds (General, Capital, Wastewater, Transit, Stormwater Utility, Cable, Old Town, Transportation Tax, and Debt Service) for the fiscal year beginning July 1, 2026.
Positions as recorded in meeting minutes; votes without recorded comment aren’t summarized.
Discussion time
Minutes of named discussion per transcribed meeting.
Full history
[7b] A public hearing on the proposed FY27 budget was held with public comment received; no Council action was taken at this meeting.
[7b] A public hearing was held on the proposed FY27 budget. Several members of the public spoke, including comments on funding a Climate and Energy Manager position and police compensation concerns. No Council action was taken.
[1d] Council discussed General Fund questions, directed staff to review Budget Memos #1, 5, 6, and 8, and reached consensus on next steps for the BPOL tax and Transient Occupancy Tax introductions.
[8a] Public hearing held on the proposed FY27 budget. Public comments included support for a full-time Climate and Energy Manager position and concerns about maintaining business competitiveness regarding meals tax, transient occupancy tax, and BPOL changes. Budget adoption is scheduled for May 5, 2026.
[11b] Council reached consensus on Scenario 3.A.A. for the FY2027 budget, setting the real estate tax rate at $1.0725, BPOL professional services rate at $0.45, BPOL other services rate at $0.30, and TOT at 10.5%; formal adoption scheduled for May 5, 2026.
[3g] The full FY 2027 Budget, incorporating all sub-fund budgets, the Schedule of Rates and Levies, the FY 2027–2031 CIP, employee compensation adjustments, and the Budget Adjustment Sheet, was adopted unanimously by the City Council.
passedAmend the main budget motion to incorporate all changes in the Budget Adjustment Sheet (Attachment I).✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ PetersonpassedSet the real estate tax rate at $1.0725 per $100 of assessed value, personal property and machinery/tools tax rate at $4.13 per $100 of assessed value, and personal property tax rate for qualifying volunteer fire/rescue members at $0.01 per $100 of assessed value, all effective January 1, 2026.✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ PetersonpassedAdopt the FY 2027 Budget (all sub-funds), FY 2027 Schedule of Rates and Levies, FY 2027–2031 CIP, FY 2027 health benefit contribution rates, 2.0% market rate adjustment for general pay scales (July 1, 2026), 1.0% COLA for general employees (July 1, 2026), 2.0% COLA for public safety employees (July 1, 2026), 3.0% salary adjustment for eligible general scale employees (January 1, 2027), and programmed annual step increase for public safety employees.✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ PetersonpassedApprove appropriation resolutions R-26-16 through R-26-24 for the General, Capital, Wastewater, Transit, Stormwater Utility, Cable, Old Town, Transportation Tax, and Debt Service Funds for the fiscal year beginning July 1, 2026.✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ Peterson
Discussed alongside
Topics that come up in the same meetings.